Inversion Fair Value Gaps IFVG ICT Signals + Alert

The Inversion Fair Value Gaps indicator identifies and highlights price zones where failed Fair Value Gaps (FVG) transform into support or resistance levels, signaling shifts in market momentum.

Usage

The tool is primarily used to identify "failed" ICT Fair Value Gaps that have been breached by price action. Once a gap is closed beyond its boundaries, it is "inverted" and expected to act as a pivot zone for future price movements.

• Bullish Inversion Fair Value Gap: Identified when a bearish FVG is invalidated by a price close above it. This zone is then treated as a support level for potential long entries.
• Bearish Inversion Fair Value Gap: Identified when a bullish FVG fails and the price closes below it. This zone subsequently acts as a resistance level for potential short entries.

Users can utilize these zones to identify high-probability reversal areas or trend continuation points following a momentum shift.

Details

An Inversion Fair Value Gap (IFVG) represents a change in price delivery. While standard FVGs are often respected as trend continuation signals, an IFVG marks the moment when the market's previous intent is neutralized. The script tracks these areas dynamically, allowing traders to see where historical imbalances have been overcome. The implementation includes advanced filtering logic to ensure that only significant price imbalances are considered, reducing "noise" from minor price fluctuations.

Settings

Global Settings

• Show All Inversion FVG: When enabled, the indicator displays historical IFVGs. If disabled, only the most recent zone is shown.
• FVG & IFVG Validity Period (Bar): Sets the maximum lifespan of a zone in bars before it is removed from the chart.
• Switching Colors Theme Mode: Adjusts the visual output for "Light", "Dark", or "Off" (standard) color themes.

FVG Logic

• FVG Filter: Toggles a refinement algorithm to focus on higher-quality imbalances.
• Filter Type: Choose between "Very Aggressive", "Aggressive", "Defensive", and "Very Defensive" to control the strictness of the FVG detection logic.
• Mitigation Level IFVG: Determines which part of the zone triggers a mitigation alert: Proximal (nearest edge), Distal (furthest edge), or 50% (midpoint).

Display & Alerts

• Show Bullish/Bearish IFVG: Toggles the visibility of specific demand or supply zones.
• Alert Inversion FVG Mitigation: Enables notifications when price interacts with an active IFVG.
• Message Frequency: Controls how often alerts are triggered (All, Once Per Bar, or Per Bar Close).
• Show Alert Time by Time Zone: Sets the timestamp format for alert messages.

FAQ

How do I interpret an Inversion Fair Value Gap? An IFVG is a zone where the market has reversed its previous bias. If price breaks through a bearish gap and stays above it, that gap becomes a bullish "Inversion" zone where you might look for support.

Can I adjust how sensitive the indicator is? Yes, you can use the "FVG Filter Type" setting. Moving from "Very Aggressive" to "Very Defensive" will reduce the number of zones detected, showing only the most prominent market imbalances.

How do I access this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.